Cathay Pacific to Cut 590 Jobs in Restructuring Move
Cathay Pacific has announced it will cut nearly 600 jobs as part of the biggest restructuring in 20 years.
The cuts include 190 management jobs and 400 non-management staff working at Cathay Pacific’s head office in Hong Kong.
The cuts are part of a three year program to turn around the losses.
Cathay Pacific said in a statement that the job cuts would be complete by the end of the year, with most of the affected employees to be informed on May 22, and over the next month.
The changes will be overseen by Cathay Pacific’s new chief executive, Rupert Hogg, who replaced Ivan Chu Kwok-leung earlier this month.
Rupert Hogg cited increasing competition and a challenging business outlook for what he called “tough but necessary decisions for the future of our business and our customers”.
Cathay has been facing tough competition from Chinese and Middle Eastern airlines that have expanded rapidly in the Asia Pacific region.
Earlier this year, Cathay posted a net loss of HK$575 million ($74 million) for 2016. It was only the third time Cathay Pacific posted a full-year loss in its 70 year history.